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CWB Dials Back PROs For 2009-10

Healthy wheat harvests and already-large supplies of barley have added to pressure on the Canadian Wheat Board’s September pool return outlooks (PROs) for 2009-10.

Compared to August levels, the new PROs released Sept. 24 find wheat PROs ranging from down $13 to up $3 per tonne, while malting and feed barley values dropped by $12 and $9 per tonne respectively.

“Despite a very late harvest, yield and quality expectations have improved significantly from a month ago,” the CWB said. “Commodity markets and currency relationships remain volatile, adding to the overall uncertainty typical of the harvest period.”

U. S. wheat futures markets have dropped 19-46 cents per bushel over the past month, and are now trading at levels similar to early 2007 before the grain rally began.

Durum fundamentals have weakened since August’s PRO, pressuring international values, the CWB said.

Malting barley is pressured by large supplies in Europe and the ongoing harvest, though Canadian supplies are expected to be lower due to a smaller crop.

Large supplies and weak corn values continue to pressure global feed prices, barley included, the CWB said.

Values for No. 1 Canada Western Red Spring (CWRS) at 14.5 per cent protein are at $263 per tonne, up $3 from August levels; No. 1 CWRS (11.5) is down $7 at $219 per tonne.

No. 1 CW Soft White Spring (CWSWS, Select below 9.9) is down $13 per tonne at $185, while CW feed is down $5 at $149 per tonne.

No. 1 CW Pool A feed barley is down $9 at $145, while Select CW two-row and six-row malting barleys are down $12 per tonne at $212 and $194.

CW Amber durum (CWAD) values, meanwhile, are mostly down $25 per tonne, with No. 1 CWAD (14.5) now at $235 per tonne. No. 5 CWAD is down $5 at $149 per tonne.

2008-09

The CWB also released its final PROs for the 2008-09 crop year Sept. 24, with wheat and malting barley values unremarkably flat from August. PROs for milling durum are mostly down $1, with No. 1 CWAD (14.5) down to $379 per tonne. No. 5 CWAD remains flat at $190 per tonne.

No. 1 CW feed barley, Pool B, rose $5 per tonne to $168. Whatever wheat in the 2008-09 pool remained unsold was in line

with the board’s projections in July, the CWB said. The increase in the feed barley PRO reflects returns that “slightly

exceeded” the board’s expectations at the time of the July PRO. Designated barley was “heavily sold” at the time of the July PRO.

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